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RULES AND CONDITIONS APPLICABLE TO TRADITIONAL IRA CONTRIBUTIONS
The IRA contribution rules are often complex. The general rules are listed below. If you have any questions regarding a contribution, please consult
with a competent tax professional or refer to IRS Publication 590-A, Contributions to Individual Retirement Arrangements (IRAs), for more information.
This publication is available on the IRS website at www.irs.gov or by calling 1-800-TAX-FORM.
REGULAR
The total amount you may contribute to a Traditional IRA for any tax year cannot exceed the lesser of the published annual limit or 100 percent of
your earned income and other eligible compensation. If you also maintain a Roth IRA, the maximum contribution to your Traditional IRA is reduced by
any contributions you make to your Roth IRA.
• You may make a contribution for the prior year up until your tax filing deadline for that year, not including extensions. Designating a contribution
for the prior year is irrevocable.
• If you are age 50 or older by the end of the year, you may be eligible to make an additional catch-up contribution to an IRA for that tax year.
ROLLOVER
A rollover is a distribution and a subsequent tax-free movement of assets from any of your Traditional IRAs, SIMPLE IRAs, or eligible employer-
sponsored retirement plans to your Traditional IRA.
• You are permitted to roll over only one distribution from an IRA (Traditional, Roth, or SIMPLE) in a 12-month period, regardless of the number of
IRAs you own. There is no limit to the number of rollovers you may perform from any of your eligible employer-sponsored retirement plans to a
Traditional IRA.
• Any required minimum distributions paid to an IRA owner or beneficiary may not be rolled over.
• A rollover generally must be completed within 60 days from the date you receive the assets.
• A rollover contribution of Roth IRA assets may not be made to a Traditional IRA.
• A rollover contribution of assets distributed from a SIMPLE IRA within two years of the first contribution to your SIMPLE IRA may not be made to
a Traditional IRA.
TRANSFER
A transfer is a direct movement of assets to your Traditional IRA from any of your other Traditional IRAs or SIMPLE IRAs.
• You may perform an unlimited number of transfers.
• A transfer contribution may not be made from a Roth IRA.
• A transfer contribution may not be made from a SIMPLE IRA within two years of the first contribution to your SIMPLE IRA.
RECHARACTERIZATION
A recharacterization is the procedure to treat all or a portion of a contribution to a Roth IRA as if it had been made to a Traditional IRA.
• A contribution that is recharacterized must be adjusted for earnings.
• The recharacterization deadline is your tax filing deadline for the year of the original transaction, including extensions.
SEP CONTRIBUTION
If you are a participant in your employer’s simplified employee pension (SEP) plan, contributions may be made to your Traditional IRA.
• Your employer may make SEP contributions to your Traditional IRA within the published annual limits.
• If your employer maintains a salary deferral SEP plan, your elective deferrals may not exceed the published annual limit.
• If your employer maintains a salary deferral SEP plan and you are age 50 or older by the end of the calendar year, you may be eligible to make
additional catch-up salary deferral contributions.
• SEP contributions to your Traditional IRA are reported for the year in which the contributions are made.
RMD REQUIREMENT
If you were born before July 1, 1949, you are required to take an RMD by April 1 of the year following the year you attain age 70½ and every year
thereafter. If you were born on or after July 1, 1949, you are required to take an RMD by April 1 of the year following the year you attain age 72 and
every year thereafter.
